Fourth arrest in Labour loans investigation

Fourth arrest in Labour loans investigation

Friday 19 January 2007 19.01 EST
First published on Friday 19 January 2007 19.01 EST

Tony Blair's aide Ruth Turner is the fourth person arrested in the 10-month cash for honours investigation. In April 2006 Scotland Yard made its first arrest - Des Smith, an adviser to the government's city academies fundraising programme.

Mr Smith had told an undercover reporter from the Sunday Times that donors to Labour's city academies programme could receive honours. Mr Smith, a headteacher from east London, denies any wrongdoing. The academies trust was chaired by Lord Levy, Labour's chief fundraiser and the prime minister's personal envoy to the Middle East. Lord Levy was the next person to be arrested in July. The peer was questioned under the Honours (Prevention of Abuses) Act of 1925 and also under the Political Parties, Elections and Referendums Act of 2000.

One donor, food tycoon Sir Gulam Noon who was originally nominated for a peerage by Labour, told police that Lord Levy had suggested he make a loan to the party in the run-up to the 2005 general election and that it need not be disclosed. Police are reportedly looking at documents that may suggest a link between donations and honours. Lord Levy was questioned for a second time in September and denied any wrongdoing, on the same day that businessman Sir Christopher Evans was arrested.

Sir Christopher, who denies any wrongdoing, made a £1m loan to Labour. Notes he allegedly made covering talks with Lord Levy about donating to the party are said to contain a reference to honours. After being bailed without charge he said he was "extremely shocked and dismayed".